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Gourmet Sweet Bakers Project 2 Final Final
Gourmet Sweet Bakers Project 2 Final Final
The company has shown an explosive annual growth of more than 25% till 2006
in its business since this unique business was started in 1992. Recently gourmet
shows 65% of annual growth in its business from 2006 to 2009. With his
commitment and strenuous effort to provide the consumers with best quality
food products in a convenient and unmatched displaying manner, Gourmet has
become a success story of business growth in Pakistan. At the moment Gourmet
has more than 4500 employees working in the organization.
Mission statement:Our mission is to provide quality products at lowest prices
Vision:Leader of quality juice providers in the region by offering products enjoyed in
every home. This will be achieved from the dedication of each employee in
conjunction with supportive participation from management at all levels.
Director
G.M Production
G.M Market
Assistant General
Manager
Area Managers
Branch
Supervisor
Assistant Branch
Supervisor
Store Supervisor
Sales Man
Assistant Branch
Supervisor
Purchaser
Industry analysis: The food items industry has been rising constantly at a considerable rate and
the eating habits of people are changing over time with the changing life styles.
With the growing trend of having light snacks with tea in the afternoon and other
readymade snacks for a meal instead of the traditional meals of curry n bread, the
demand and consumption for the products of this industry is growing rapidly.
Apart from that as more people and youngsters are working especially the
women, their daily lives are becoming very fast and they dont have time to cook
at home. Due to this reason more people are now seeking convenience goods,
which act as a alternative to the traditional meals. Although people are becoming
more aware and more health conscious thus they demand high standards of
quality and hygiene along with a balanced nutrition.
Along with that the trend of celebrating events and having a get-together in the
West is now sweeping our culture as well and more people are now celebrating
many different events such as birthdays, ceremonies, anniversaries, New Year,
Valentines Day, Mothers Day etc as compared to the few events celebrated
earlier such as Eid-ul-Adha, Ramadan, Eid-ul-Fitr, weddings, birthdays and get
to gether. These events boost the sales of this industry as people opt to buy things
from outside instead of cooking themselves.
The trends of dining out have also grown rapidly over the past few years and
thats the reason why many new companies like Gourmet are entering the
Restaurants market.
The acceptance and need for such products are growing every passing day and it
is expected to grow at a higher rate in the future as well which is a very healthy
sign for companies like Gourmet to invest smartly and be in front.
PEST analysis:1) Political change= from one party (change of government) to another
Political analysis:Political scenario in Pakistan has seen many important changes in recent years.
The political environment directly influences all the industries working in the
country. Similarly the production distribution and use of Gourmets products are
subject to some federal laws, such as the Food and Drug Act. The businesses are
subject to the Government stability in the countries as the businesses are directly
subjected to the taxation policy of the country they are operating. They also have
to comply with federal, state and local environmental laws and regulations.
According to the Global Competitiveness Report 2010-2011, Pakistan ranks
poorly in terms of domestic commerce measures: business sophistication, goods
market efficiency as well as property rights protection. Pakistan ranks lowest
when compared to other Asian countries including India, Indonesia, Thailand,
Malaysia and China. As shown in Table 1, Pakistan ranks 46 out of 139 countries
in terms of business cluster development compared with India at 29 and China at
17.
Table 1: Business Sophistication9
Countries
Cluster
Local
Local
Developme
Supplier
Supplier
Pakistan
India
Indonesia
Thailand
Malaysia
China
nt.
46
29
24
34
15
17
Quantity
87
7
43
26
29
19
Quality
95
60
61
43
37
54
According to the prices above, a small office space of 12 x 38 square feet is rented
out for between PKR 29,640 (minimum) to PKR 91,200 (maximum) in
Islamabad. The productivity of a city and employment generation needs more
entertainment, hotels, shopping areas and offices in large complexes, but no
space has been provided for large complexes to develop. Trading policies are the
long run hurdles that cannot be resolved in near future.
The Pakistan Pure Food Laws (PFL) of 1963 is the basis of the existing traderelated food quality and safety legislative framework. These laws cover 104 food
items falling under nine broad categories: milk and milk products, edible oils and
fat products, beverages, food grains and cereals, starchy food, spices and
condiments, sweetening agents, fruits and vegetables and miscellaneous food
products. The regulations address purity issues in raw food and as well as
additives, food preservatives, food and synthetic colors, antioxidants, and heavy
metals. All these improvements will help Gourmet baker to enter in new markets
which are conscious about traditional food items and also with security measures
such as Sharjah, Dubai and other Middle East countries.
Existing system of General Sales Tax would be reformed to eliminate multiple tax
rates and replace it with a single lower rate of 15%.
The reformed GST will not apply on health, education and food items consumed
by the poor. The GST will not apply to turnover less than Rs. 7.5 million per year
whereas the current threshold is Rs 5 million per year and would be automated
thus reducing possibilities of corruption and refund delay.
Above situation analysis of taxation structure for 2010-11 shows some mixed
trends for the future prospectus of gourmet baker of Pakistan. Increase in
exemptions for income tax will increase the buying potential of gourmet
customer and will stabilize the employee the gourmet baker by strengthen there
economical conditions. In the mean while increase in GST and Surcharges on
electricity consumption will lower down the sales volume of gourmet products
due highly cost of production resulting in high product prices.
In Pakistan sugar industry is operated almost in all by some political families and
in food industry sugar is a major raw material. For the sake of fetching good
profits these groups put a strong pressure and prove themselves a strong
lobbying group. Employee union is also an other lobbing group that pushes the
gourmet baker for higher wages that will result in high cost of productions.
Strong transport unions may also create some logistic problems for Gourmet
baker distribution channel.
India is a leading manufacturer of sweet and bakery items. Low labor costs in
India has enable Indians to get more share in international markets. In the mean
while Indian lobby is strong enough as compare to Pakistan to reach in foreign
markets. Gourmet and many other entrepreneurial needs strong government
assistance and coloration to enter in international markets
Recent wave of war against terrorism has created a sense of in security in general
public in Pakistan. Shopping trends are decreasing due to suicidal attacks and
people are not willing to come at bazaar as they were in past. This situation has
adversely affected the sales of gourmet baker and sweets.
2) Economic change= For example a recession creating increased activity at
the lower ends of product price ranges. Rate of interest raises depressing
business and causing redundancies and lower spending levels as well as
energy crisis too.
Economic analysis
Despite inhospitable domestic and international environment resulting from the
either the global recession or due to the terrorism acts, Pakistans economy grew
by 2 percent in the financial year 2008-09 according to Economic survey 200809. Reports have shown increase in GDP, increase in per capita income and
increase in IT development as well which are positive signs for the industry but
there are some negativities as well. Like all the other companies are subject to the
harvest of the raw material that they use in their soft drink and juice, like corn,
oranges, grapefruit, vegetables etc. Gourmet also relies heavily on trucks to
move and distribute many of their products, fuel is a very important subject, so
they are subject to the fuel prices. Moreover, there has been a crisis in the
production of sugar in Pakistan, with prices sky rocketing. Another crisis that
Pakistan is dealing is the shortage of electricity. Such economic factors have
resounding impact on such industries and increase the cost of goods.
3) Socio-cultural change=Involves changing attitudes and lifestyles. The
increasing number of women going out to work, for example, led to the need
for time-saving products for the home.
Socio-culture analysis
The population of Pakistan is on the rise where as the health consciousness
among the people is also a lot more than it has been in the past. The age
distribution of Pakistan is also very balanced, major portion of its population
consists of youth. Gourmet bakery products, dairy products as well as beverages
and moreover Juices and ice creams are subject to the lifestyle changes as the
awareness of health consciousness is rising in the people now. This has affected
the industry in the positive manner and many new companies are being entered
in the food market, the usage of the food products in the households has
increased a lot. The need for hygienic products and healthy products are in
important in the average day-to-day life. Consumers from the ages 37 to 55 are
also increasingly concerned with nutrition. There is a large population of the age
range known as the baby boomers. Gourmet has to pay a special attention on the
lifestyle changes. Further Income of people is increasing more trends towards
FMCG. Further a major social trend in the rural areas of Pakistan has been a shift
from presenting guests with drinks and bakery products such as lassi towards
such beverages and bakery products. People use bakery products on different
events new born babies, Basant, Shabraat, Eid milad-un-Nabi (s.a.w),
Eid-ul-Fiter, Eid-ul-adha, Weddings, Engagement parties, birthdays,
Father`s day, mother`s day, valentine`s day and get together. All these
situations are calling for new and new opportunities and investors.
4) Technological change=creates opportunities for new products and
product improvements and of course new marketing techniques- the
internet, e-commerce.
Technological analysis
market share. Sweet and other bakery products are prepared with immense care
using traditional and authentic recipes to give unforgettable taste.
Customer Retention:
As Gourmet is offering complete range of sweets, dairy, and bakery products to
their customers with the best quality and taste. Gourmet is able to retain the
customers because of its brand name and worth of the brand. As retaining the
customer is better rather than switching towards the new customers.
Weakness:
Less Financial resources for advertisement:
Gourmet is using less financial resources for advertisement. By using the
appropriate resources they can advertise their product by different tools of
advertisement.
Latest Machinery required increasing the Production Rate:
Latest machinery is the key strength of any organization, but Gourmet lacks in
this point. By using the latest machinery Gourmet can increase the production
rate.
No broadcast media is used:
The term broadcast media covers a wide spectrum of different communication
methods such as TV, radio, newspaper, magazines and many other materials
supplied by the media and press, so more focus should be on broadcast media.
Opportunities:
The changes in the way consumers spend and what they buy provides a big
opportunity for Gourmet Baker Pakistan to explore.
Threats:
Price wars between competitors, price cuts and so on could damage profits
for Gourmet Baker Pakistan.
The rise and/or fall of the foreign exchange rate could threaten Gourmet
Baker Pakistan with regard to importing and exporting.
Gourmet could be a big threat because it is also offering a sweet Niralas taste and
quality could be the restrictive force for other to penetrate.
Change in the consumer preference:
Changing of consumer preferences is a major threat of any organization. As if we
talk about Gourmet now people prefer international brand over local brand which
have become a major threat.
BCG Matrix
The BCG matrix method is based on the product life cycle theory that can be used
to determine what priorities should be given in the product portfolio of a business
unit. To ensure long-term value creation, a company should have a portfolio of
products that contains both high-growth products in need of cash inputs and lowgrowth products that generate a lot of cash. It has two dimensions:
Market share
Market growth
The basic idea behind it is that the bigger the market share a product has or the
faster the product's market grows the better it is for the company.
Placing products in the BCG matrix results in 6 categories in a portfolio of a
company:
1. Stars (=high growth, high market share)
Stars generate large amounts of cash because of their strong relative market
share, but also consume large amounts of cash because of their high growth rate;
therefore the cash in each direction approximately nets out. If a star can maintain
its large market share, it will become a cash cow when the market growth rate
declines. The portfolio of a diversified company always should have stars that will
become the next cash cows and ensure future cash generation.
2. Cash Cows (=low growth, high market share)
As leaders in a mature market, cash cows exhibit a return on assets that is greater
than the market growth rate, and thus generate more cash than they consume.
Such business units should be "milked", extracting the profits and investing as
little cash as possible. Cash cows provide the cash required to turn question
marks into market leaders, to cover the administrative costs of the company, to
fund research and development, to service the corporate debt, and to pay
dividends to shareholders. Because the cash cow generates a relatively stable cash
flow, its value can be determined with reasonable accuracy by calculating the
present value of its cash stream using a discounted cash flow analysis.
3. Dogs (=low growth, low market share)
Dogs have low market share and a low growth rate and thus neither generate nor
consume a large amount of cash. However, dogs are cash traps because of the
money tied up in a business that has little potential. Such businesses are
candidates for divestiture.
becoming the market leader, then after perhaps years of cash consumption it will
degenerate into a dog when the market growth declines. Question marks must be
analyzed carefully in order to determine whether they are worth the investment
required to grow market share.
5. War Horses
They have high market share, but the market has negative growth; the problem
for management is to decide whether the product is in an irreversible decline, or
whether it can be revived, perhaps by repositioning into another market.
6. Dodos
They have a low share of a negative growth market, and are probably best
discontinued.
DATA
FAZAL SWEETS:
Avg. per day sale of Fazal sweets in 2010=
75000
2250,000
27000,000
68,000
2040,000
24480,000
63,000
1890,000
22680,000
NIRALA SWEETS:
60000
1800,000
21600,000
40,000
1200,000
14400,000
20,000
600,000
7200,000
GOURMET SWEETS:
Avg. per day sale of Gourmet Sweets in 2010=
85,000
25550,000
30600,000
70,000
2100,000
25200,000
50,000
1500,000
18000,000
SALES
Companies
Fazal sweets
Nirala
Gourmet
Total
2008
2268
720
1800
4788
2009
2448
1440
2520
6408
2010
2700
2160
3060
7920
Total
7416
4320
7380
2008-09
1.26
0.31
0.79
2.36/3=0.78
2009-10
0.97
0.57
1.02
2.56/3=0.85
MARKET GROWTH
Company Growth of 2008 to 2009
2009 to 2010
Each year
Fazal sweets
(2448-2268)/2268*100=7.94%
(2700-2448)/2448*100=10.29%
Nirala Sweets
Gourmet Sweets
(1440-720)/720*100=100%
(2520-1800)/1800*100=40%
(2160-1440)/1440*100=50%
(3060-2520)/2520*100=21.45%
INTERPRETATION:
In the BCG matrix, Relative market share is given at the x-axis with a median
point of 0.8 and market growth is given at y-axis with a median point of 38.83%
and with positive growth upward and negative growth downward. Positive
growth upward and negative growth downward.
100%
STARS
QUESTION MARK
N1
N2
Gourmet (2008-2009)
DOGS
Gourmet (2009-2010)
F1
F2
0
1.5 1.4 1.3 1.2 1.1 1.0 .9 .8
WAR HORSES
.7 .6 .5 .4 .3 .2 .1 .0
DODOS
Sweets are in our culture for centuries. It is our cultural heritage; people of our
region have different taste in sweets as compared to west. The western people eat
chocolate as sweets but in our region sweets are mithai. So in every town every
city of Pakistan these sweets shops are seen. Lahore and the people of Lahore are
known for their tastes and eating habits so there are many small scale sweet
shops in almost every area. Gourmet has also started as a small shop in Lahore
but with changing market conditions with increase in purchasing power of
customer and their every day changing taste buds gourmet has also improved.
Although the tastes of customers in many other dishes are changing people now a
days are eating fast foods and liking Chinese and western dishes rather than our
typical eastern or Pakistani dishes, like we have seen many western dishes in our
wedding occasions which shows the changing consumer needs. But this trend is
not in sweets industry the habit of eating sweets is very much in like centuries
before. It is the most essential component of wedding no wedding, no ceremony
or other occasion of celebration is complete without sweets. With the ever
increasing purchasing power people are purchasing sweets in bulk form.
Although the industry of sweets is century old but it is not fading with the time it
is getting rich day by day.
CUSTOMER CHARACTERISTICS
How selective is your customers in terms of buying your product
How much customer switch from your product to another product
The products being sold at Gourmet carry the following attributes which are:
Quality:
Gourmet has been very careful and has been following a very strong standard for
maintaining its quality so that customer is not complaining about its products.
Since they are dealing in food products where quality plays a very vital role so
they believe in quality good and healthy product to the customer.
Purity:
Its another attribute which has been taken care of. In products such as mithai
where people like that they get pure things specially in milk and better where
there are chances that the customers dont get pure products. Gourmet has made
sure that they use pure materials in making of the product so that when the
customer gets it they dont feel that its not pure.
Freshness:
Food products all over the world are loved for their freshness and if we talk about
products which Gourmet is selling they should be fresh otherwise customer wont
purchase it. Gourmet promises to give fresh products to their customers by giving
them those products which they feel are good and healthy to eat and if any
product they feel is not fresh enough they wont give it to the customer.
Good Taste:
Taste is because of which a customer would love to purchase a product again if he
likes the taste of your product. For so many years, Gourmet has been way ahead
in the market and leading it on the basis of its taste and it promises to give good
taste to their customer so that they enjoy it.
2. Benefits:
Same taste:
This is one of the biggest benefits of coming to Gourmet that the consumer will
get the same taste whenever he purchases products from Gourmet its not that at
one time the products will taste different and other time they would be different.
Uniqueness:
One of the strong aspects of Gourmet is that its sweet (mithai) has a unique and
at the same time very nice taste which no other player in the market is providing.
Large Variety:
The customers can benefit from a large range and variety which Gourmet is
providing them not only in its major products which is sweet (mithai) but lot of
other products such as dairy products etc.
Cleanliness:
Gourmet is one of the strongest brand name and market leaders in its field which
enables them to get more benefit out of it. Since they are one of the biggest as
well as the oldest in this field they have established a name in the market and
consumers are automatically attracted towards Gourmet.
SEGMENTATION AND TARGETING
There prices of Gourmet products are higher as compared to their main
competitors and secondly their shops and stores are mainly located costly areas
of cities. Keeping these factors in view we can say that there target market is
upper middle to upper class.
Continuous Learning about the Market:
Gourmet is different from others because they have been continuously upgrading
themselves over the years. They started their business from the inner city
congested
Locality as traditional sweet shop mostly found in cities doing small scale
business and selling only mithai related products or dairy products.
But Gourmet has learned a lot from the changing tastes of their customers and
their preferences. They changed their stores outlook made them more modern
and updated and introduced more updated functions in stores operation. They
have been successfully able to shift their small scale business to a company level
business. Their initial area of business was their hometown Lahore, but they
successfully expanded their business to other big cities of Pakistan.
Secondly they continuously keep working on their products and for over the years
been able to launch different successful products in market. Their major focus is
on quality of their products so to maintain strict laws of quality they have
separate quality control department.
The other example of their continuous learning about the market is their
successful launch of snacks product category and their dairy products. They
launched Gourmet milk in the market a few years back although their milk was
not the big success as it has to compete industry giants like nestle, haleeb etc. but
their snacks category is successful and been able to capture a large portion of the
market. These snacks and beverages are not only available at gourmet stores but
at some other stores also.
Target Market Analysis:
Demographics:
Mithai is a product well-known among all age group people.
People of all:
Age
Gender
Generation
Family Size
People belong from all ages generally love sweets and our core products so there
is no exception likewise teenagers like it whereas old people dont like it, but in
one sense gourmet is targeting more towards people belong from age group
approx 10 to 50 years
I.e. including teenagers, youngsters, mature people however age group exceeding
50 years i.e. old usually suffers from different sugar prohibit diseases. So this
sector is a low consumer of their traditional product.
New generation is more concern about new taste and looks, gourmets seems
quite conscious about this factor. It is continuously modifying its products
according to the changing needs of the new generation i.e. virtual placement in
order to facilitate the customers worldwide.
Being a server of eastern society like Pakistan where family size is usually large
which means strong concern about events and occasions. Gourmet as one of the
largest sweet dealers was always be there to facilitate them i.e. whether its a
joyful moment like marriages or a moment of sorrow.
Geographic:
Gourmet is targeting mostly the urban areas all over Pakistan
Lahore, Karachi, Islamabad, Rawalpindi, Faisalabad, Sialkot, Kasur, Multan,
Gujranwala
Psychographic:
Marriages, cultural occasions and personal events are the events from which no
social class can be excluded. However being a sole marketer of high quality which
ultimately leads to higher price, Gourmets focus is more towards societys middle
and upper class.
Media Graphics
Hoardings, Banners, Leaflets, Magazines, Newspaper, Advertisement on public
transport
Porter 5 Forces
Brand Identity:
To identify a brand in the market is more difficult for any new entrants, because
gourmet already has introduced such type of taste & quality in this industry that
it is very hard to compete.
Threat of Substitute Products:
The substitute products may be;
Bakery makes cakes, chocolates, ice-cream etc
Local area manufacturers
Bargaining Power of Buyers:
The bargaining powers of buyers are high because;
Convince Product
Low Involvement of Buyers
Buying Behavior Price sensitivity
Brand Loyalty Status is low
Culture and environment inside the Gourmet is very much attractive people
serving customers are always available for service. The person at desk always is in
a happy mood to treat the customers.
Well Organized Structure:
Gourmet has a well organized structure. All the departments perform their work
according to the organizational structure. More than 20% of Mithai production at
Gourmet sweets is carried out at automated plants.
Computerized Database System:
Gourmet has an organized database; all the activities are recorded in the
database. Computerized database provides error free center. It is updated on the
regular basis.
Team Work:
All the departments are working as a team such as Quality assurance, Marketing,
MIS, HR and Administration etc. Working as a team increases the efficiency of
the Gourmet sweets.
Quality:
By applying the various strengths gourmet offers the product to the customer.
Gourmet never compromise on quality that is why they are able to capture a huge
market share. Sweet is prepared with immense care using traditional and
authentic recipes to give unforgettable taste.
Gourmet bakers
Gourmet deals in multi products and it possess:
A distinct mission
Own managers
Specific competitors
BCG Strategies
Question marks- products with low market share in industries with high
growth potential- Covert to star, or Exit market.
Stars- products with high market share in industries with high growth
potential- make heavy investment because of sales/profit potential.
Cash cows- products with high market share in industries with low market
growth potential-maintain status as long as possible-products produce
strong positive cash flows.
Cash cows support Gourmet because of good will and market share.
LOW
HIGH
Stars
Cash cows(hold)
Question?
Dogs
LOW
War Horses
Dodos
The BCG identified four major strategic thrusts in terms of market share.
Once the products have been plotted, the planner then has to decide on a
strategy for that product. There are 4 major strategies that can be
followed.
Build
Hold
Harvest
Divest
Build
The product or SBUs market share needs to be increased to strengthen its
position. Invest in one or more SBUs to build a share .This strategy are suited to
Question Marks.
Hold
Gourmet objective is to maintain the current share position and it lies in
cash cows and this strategy is often used for Cash Cows so that they continue to
generate large amounts of cash.
Gourmet invests just enough to maintain a share in the
market.
Harvest
Here management tries to increase short-term cash flows as far as possible
(e.g. price increase, cutting costs).
It is a strategy suited to weak Cash Cows or Cash Cows that are in a
market with a limited future.
Harvesting is also used for Question Marks where there is no possibility
of turning them into Stars, and for Dogs.
Divest
The objective of this strategy is to rid the organization of the products or
SBUs that are drain on profits and to utilize these resources elsewhere in the
business where they will be of greater benefit.
This strategy is typically used for Question Marks that will not become
Stars and for Dogs.
Gourmet lies in Cash cows and these are cash generators and require an
invest or hold strategy while maximizing cash flow. Gourmet aim is to
achieve a balanced portfolio, sustaining or holding the Cash Cows.
Cash Positions of Gourmet VS Competitors
Business Type
Cash Cows(Gourmet)
Star
Cash Source
More
More
Cash Use
Less
More
Dog
Less
Less
(Fazal Sweets)
Question
Less
More
mark(Nirala Sweets)
Demand Variability
Industry Profitability
Industry Rivalry
Global Opportunities
Macro Environmental Factors (PEST)
Gourmet Strength can be determined by following factors:
Market Share
Growth in market share
Brand Equity
Distribution Channel Access
Production Capacity
Profit margin relative to competitors
Technological or other innovation
Customer Loyalty
GE Matrix
(Gourmet sweets & bakers)
The GREEN ZONE consists of the three cells in the upper left corner. If
your enterprise falls in this zone you are in a favorable position with
relatively attractive growth opportunities. This indicates a "green light" to
invest in this product/service.
Best Strategy: INVEST FOR GROWTH
The RED ZONE consists of the three cells in the lower right corner. A
position in the red zone is not attractive. The suggested strategy is that
management should begin to make plans to exit the industry.
Best Strategy: HARVEST or DIVEST.
High Attractiveness
High Attractiveness
High Attractiveness
LEADER
GROWTH
IMPROVE/QUIT
Strong Competitive
Average Competitive
Position
Position
Strategies
Strategies:
Strategies:
provide maximum
investment
diversify
your position to focus
your resources
accept moderate nearterm profits to build
share
build selectively on
strength
define the implications of
challenging for market
leadership
Medium Attractiveness
Medium Attractiveness
Medium Attractiveness
TRY HARDER
Average Competitive
PH. WDL
Strong Competitive
Position
Position
Strategies:
Strategies:
Strategies:
invest heavily in
selected segments
establish a ceiling for
position
business
to protect your
wish to achieve
vulnerable position
segments to apply
strengths
Low Attractiveness
Low Attractiveness
Low Attractiveness
CASH GENERATION
PH. WDL
WITHDRAWAL
Strong Competitive
Average Competitive
Position
Position
Strategies:
Strategies:
Strategies:
defend strengths
shift resources to
attractive segments
examine ways to
revitalize the industry
time your exit by
monitoring for harvest
or divestment timing
STRATEGIES
BUSINESS STRENGTH (Gourmet)
Strong
PROTECT POSITION
Invest to grow at
Medium
INVEST TO BUILD
Concentrate effort on
maintaining strength
Challenge for
Weak
BUILD SELECTIVITY
leadership
Build selectivity on
strengths
Reinforce vulnerable
weaknesses
Withdraw if indications
of
areas
BUILD SELECTIVITY
Hold SELECTIVITY/
LIMITED EXPANSION OR
MANAGE
HARVEST
attractive segments
FOR EARNINGS
competition
Emphasize profitability by
raising productivity
Protect existing
program
minimize investment
Concentrate
investments
Concentrate on attractive
Defend strengths
Minimize investment
profitable segments
segments
DIVEST
cash value
investments meanwhile
SCORPIO TECHNIQUE
This technique is used to justify the strategies that we have selected while
doing the analyses of BCG Matrix. Scorpio technique is a continuous process of
every company and each and every company have own time frame to review the
technique may be in 0ne year or one month ,may be in one week or other .
Industry or Market
Industry or technology thinking
1. Example:- online complaint centre, e-commerce, research &
development.
CUSTOMER:-
1. Differentiation marketing.
1. Superior values and services with attractive and hygienic and healthy
products.
2. Different products, beverages, cakes, pastries.
3. Provide banking facility that influence the customers, provide value,
improved brand image, introduced new innovative products.
4. Sugar free ice creams.
5. Providing more healthy products to satisfy each and every type of
customers
6. Yes we are managing the life cycle.
7. Through Advertisement, print media, number of branches increase.
Analysis and recommendations
The whole report shows that the Gourmet bakers and sweets are striving to get a
competitive advantage against its customers but there are some problems too on
which the company should concentrate because they serve many other factors
respectively
1. Gourmet should offers incentives and benefits to its old employees to reduce its
turnover rate.
2. And secondly they should reduce the employee work hours so that they better
deals the customers.
3. The Gourmet hasnt advertised themselves through media; they should have
adopted some other source of advertisement to cater the market. Well they are
well known in the market but they should use TV media for their advertisement,
they could also advertise themselves on the cable in the areas in which they are
having their chains.
4. The Gourmet should plan for the loyalty of its customers. They should give
discounts to its regular customers in this way the customers sincerity with the
company will grow.
5. The Parking area of the Gourmet bakers should be enhanced if their customers
face problems in parking .then the customer would prefer to go on some other
store to find convenience rather than buying for the Gourmet.
7. The Gourmet should increase the quality of the new products as it has offered
(milk and ice-cream) and it should also concentrate on the advertisement of the
new product seriously.
8. The Gourmet should take feedback from the customers by personally survey
and should concentrate on the requirement of the customers.
9. As the people is weight and diet conscious today so the Gourmet bakers should
introduce sugar free sweets and cakes for those people too.